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Do I need to declare foreign inheritance money om 1040? Where do I find the form in TurboTax Deluxe 2023?

 
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3 Replies
jtax
Level 10

Do I need to declare foreign inheritance money om 1040? Where do I find the form in TurboTax Deluxe 2023?

Gifts (including inheritances) are not subject to federal income. "income does not include the value of property acquired by gift, bequest, devise, or inheritance." tax. https://www.law.cornell.edu/uscode/text/26/102

 

However, if the gift/inheritance is large enough and came from a "foreign person" (i.e. not a US Citizen or resident and sometimes expatriates) you may need to report the gift on special IRS form.  More info is here:

 

https://www.irs.gov/businesses/gifts-from-foreign-person

 

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jtax
Level 10

Do I need to declare foreign inheritance money om 1040? Where do I find the form in TurboTax Deluxe 2023?

Sorry I went too fast. See this prior discussion that covers your situation

 

The 3520 form (and the FBAR/FinCen114) are not included in TT. You need to file them separately. The FBAR can be done online as described in this thread.

 

Both have amounts below which you do not need to file.

 

https://ttlc.intuit.com/community/taxes/discussion/form-3520/00/3180114

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MinhT1
Expert Alumni

Do I need to declare foreign inheritance money om 1040? Where do I find the form in TurboTax Deluxe 2023?

No. 

 

You don't report your foreign inheritance on your US tax return. Any income derived from the inheritance must be reported.

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